Dutch smokers buy cigarettes abroad
In the Netherlands, a pack of cigarettes presently costs about PLN 50, which ranks it at the top of the EU's most costly countries. For comparison, in Poland the price of the package is 20.82 PLN.
Under the fresh directive, in countries specified as Poland or Bulgaria, cigaret prices could increase to around PLN 40 per package to adapt to fresh minimum excise rates. In countries already gathering the fresh EU minima, specified as the Netherlands, Denmark, Belgium and France, prices will stay at the same level as they are today.
The price difference is so crucial that many Dutch choose to buy in neighbouring countries, where cigarettes are available at importantly lower prices.
A survey conducted in 2023 by Kantar commissioned by VSK shows that as many as 40% of cigarettes and 60% of tobacco for self-spinning come from another EU countries, including Poland.
The Netherlands wants to tackle this problem by seeking to harmonise prices across the Union. The loud advocate of the fresh directive is Wopke Hoekstra, a Dutch Commissioner who, as reported by the Euractive portal, Hoekstra expressed a "personal wish" to deal with the document.
Euractive notes that Hoekstra's position may be incompatible with his chief, European Commission chair Ursula von der Leyen. The revision of the Tobacco Excise Directive is not part of the Commission's 2025 work programme.
Excise reforms in the EU
Work on the fresh excise directive (Tobacco Excise Directive - TED) began in 2022, but due to the war in Ukraine and another geopolitical challenges the task was suspended. Now work on its implementation has a chance to be resumed.
The Netherlands, whose government has already imposed advanced taxes on tobacco products, peculiarly insists on speeding up the legislative process, arguing that the change will aid solve the problem of illegal imports of cheaper tobacco products from countries with lower excise rates, including Poland.
The impact of fresh excise rates would be peculiarly felt in Poland, among others. Our country is now in a group of countries which do not meet the fresh minimum rates provided for in the Directive. It can so be expected that the prices of cigarettes and another tobacco products will increase importantly if the changes are accepted.
Difficulties in negotiations
Opponents to rise taxes on tobacco in the EU argue that specified action will importantly affect their markets. This group includes Italy, Greece, Romania and Luxembourg. Poland did not take a position on this matter. In turn, 13 countries are in favour of adopting the fresh legislation: in addition to the Netherlands, these are Austria, Belgium, Bulgaria, Cyprus and the Czech Republic.
The current Polish Presidency of the EU Council is the minute erstwhile our country has the chance to take a key negotiating position. The Polish government does not intend to usage its hand to initiate an increase in taxes in the EU. Even during ECOFIN in Warsaw, Finance Minister Andrzej Domanski said directly: this directive is not a precedence for us, stressing that securitisation is simply a priority. The country that will replace us here is Denmark, which meets the proposed excise requirements now.
